‘Demystifying Adaptation Finance for the Private Sector’ is the second of a series of studies by UNEP FI that analyse the role of private finance in confronting the challenges of climate change. This study seeks to shed light on the role, potential and policy needs of private financial institutions in enabling adaptation to the unavoidable physical impacts of climate change. Using a broad sample of adaptation-related measures, it explains how private sector actors can adapt their production processes, supply chains, and marketed products to a changing climate. It explains how the required investments will be financed, and identifies the barriers currently inhibiting private financial flows for adaptation, both on the demand and supply sides of financial transactions. Importantly, the study discusses the catalytic role that national and international public actors need to play in establishing the policy and public finance regimes to mobilise private adaptation finance at scale.